Author Archives: Money Reasons

About Money Reasons

A offbeat personal finance blogger that comes from the tech world.

Do You Look Poorer Than You Are?

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A recent conversation with a colleague at work made me realize that I look and dress poorer than I am.

During a soccer tournament this past fall, my daughter’s team went to a water park called Kalahari Resort where her soccer team competed.  Now to participate in this tournament, the parents would have to pay for a few nights at this expensive (but still affordable) water park.  In the past, a younger me would have said “WHOA!” wait, that’s crazy expensive…  The trip came to around $500, and while not cheap, still doable.

Now here is where it gets interesting…

The work colleague that I mentioned earlier was in the break room talking about the trip to a subordinate in her department.  I commented on how great her son was and she started talking about the tournament to me.  I agree and said I thought it was a great time for my daughter too.  At that point, she got a funny look on her face.  She said, “YOU, were there?”  I replied, “why yes, it was a wonderful experience for my daughter“.  She then started asking me about the trip and if I went inside the water park.  So then I actually had to prove to her that I was there by pointing out some of the highlights of the park and some of the gameplay that happened on the field.

I didn’t put much thought into it at the time, but now I realize that she was really questioning me to see if I really went.  It was a pricey trip, and she’s a VP, so I guess she thought such a trip would be out of my price range.  I think she started asking about the features of the park because she didn’t believe I actually stayed at the hotel!  Now I don’t know her well, so I guess if you judge me by my clothes and car, it would make sense that such a trip would be out of my affordability range…  Perhaps if it was an event that happened every weekend, it really would be outside of my price range…

While I’m not rich, it made me start to wonder how many people are out there that are very rich and dress like they are poor?

This might surprise people, but I bet the majority of people who are rich don’t necessarily want things that are fancy, no flashy cars, or Armani suits…  I’m not just talking “millionaire next door” types either!  Look at Sam Walton or Warren Buffett, both were super rich, but didn’t look the part, no Great Gatsby’s there!

If you were rich, do you think you would look the part?  I know I would buy a little more trendy clothes, but not much!  And for my car, a normal sedan or SUV would be enough for me, although perhaps a Lexus for the car, that’s not too luxurious, right?

Anyway, I just thought I’d share my story with you, I hope you got a chuckle out of it, I did!

MR

Grilled Cheese Sandwich in a Minute or Less

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Back when I was in college, sometimes I wouldn’t have enough time to eat.  The following is one of my best tricks for a quick meal on the run.

Instead of grilling cheese over the stove, I would do the following:

  • Put either 2 or 4 slices of bread in the toaster and let brown to normal desired level of toasting.
  • Put two slices of American Cheese slices between each pair of toast so that it looks like a typical grilled cheese sandwich
  • On a microwave save plate (or napkins/paper plate), put the toast and cheese in the Microwave and cook for 13 seconds or unit the cheese start to melt.
  • After 13 seconds if the cheese isn’t melted, put it back in for 3 seconds more.  Repeat until the cheese is soft or melted to your satisfaction.  Personally, I don’t like my cheese running wet, soft is just fine for me…

An additional step I use to do was to put butter on the top of the sandwich, but that took too much time, so I cut that step out.  I doesn’t add much time, but when you are in a hurry… You are in a hurry!

Grilled Cheese Sandwich

Now most of you already know this trick, but I’ve come across enough people that I thought that I would share my little trick.  Yes, technically it’s not a grilled cheese sandwich, but it taste about the same.

A nice compliment to the microwaved “grilled cheese” sandwich would be carrot sticks or some other veggie that you could just grab out of the refrigerator while running out the door to class or work.  My favorite was carrot sticks, because they are not wet or stick and easy to chew on while in the car or walking…

Note, if you don’t use butter, this version of a grilled cheese sandwich is almost identical to the original grilled cheese sandwich, but in a fraction of the time, and without any real cleanup afterwards (this assumed you use a paper plate or a napkin instead of dishes).

Do you have any quick, time saving cooking tips?

Cheers,

MR

Are We Losing Our Ability To Think Independently?

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I see so many people repeat what they’ve seen on TV like it’s fact, that it got me wondering if we are losing our ability to think independently or really even think for ourselves at all?

Case in point, a friend that I know works in the financial industry.  He told me exactly how he perceived what caused “The Great Recession” and I agreed with his logic.  Now just a month ago, he’s telling me and entirely different story because he was a documentary on it.  Well, a documentary versus living through it with connections to what was happening… hmmm.

Here is a man, that actually was part of the financial system, saw and heard what was going on, but since seeing the documentary, changed his tune and blamed it all on the banks.  It really was more than that banks…

Oh sure, there were some unscrupulous lenders, but if you think that they were all like that you are sadly mistaken.  I think that it was mainly the construction of the complex derivatives that caused the problems and made it so the rating companies didn’t have a clue (nor did the companies peddling the stuff), but I digress…

The thing that kills me is my buddy, who was much closer to the financial downturn I ever was, basically forgot what he lived through and instead change his entire mindset based on a documentary!  Like those documentary creators were unbiased and were in the middle of what was going on more-so than he was…

It reminds me of the “Jedi mind trick” from Star Wars.  “Believe what you watch, you will” says Yoda…

The thing is we’ve all been influence by what we watch on TV.  I know that after watching certain movies I get pumped and want to work out.  I’ve even acted out a few dangerous scenes when I was younger with friends (ah, those teenage years).  Now that I’m older I realize how incredible stupid that was of me to do.

I wonder how much of our life is misguided by fantasies and make believe magic that we watch on TV and the movies than reality.  Most of us look up to actors, not really innovators in our country that improve our lifestyle.

The real question is how do those of us in the middle get back on a productive and reality based track again (if we were ever on that track to begin with)?

Perhaps less TV and less online time is the answer?  Perhaps trying to think outside of the box a bit (or a lot) more?

Hard to tell, I’m still experimenting myself…

MR

 

Why Taxing Dividend Income Hurts The Elderly

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Let’s say it’s thirty years from now, and you’ve been a solid middle-income earner your entire life.  You were able to put some money in dividend stocks and mutual  funds that pay a dividend.

With your dividend portfolio, you get by fairly nicely.  You might even be able to go on vacation every now and then.

But times have changed and even though you worked hard your entire life, the government and certain people in the population want to tax those dividends now because they view dividend income as a rich person’s income stream.  But what those who want to tax dividends at higher rates don’t realize is that there are also adverse side effects of doing this.

Believe it or not, but when you don’t have money in retirement and you are hunger, you still have to pay for the food somehow.  If your dividends income stream is cut because of higher taxes on them, then you might have to go back to work.  This in turn makes it harder for young people to get jobs, since the elderly and the young compete for the same entry-level jobs.

I have friends with retired parents who told me a few years ago that it was getting financially harder every year because of the cost of living and inflation.  You see, to them increases in gas prices and food have a direct impact on what they can afford.  I’m sure they aren’t going to be happy once they see that their small dividend portfolio provides less money because of the possibility of dividends being taxed.  I wonder if you’ll see them working at McDonalds soon?  Perhaps not, they getting pretty old.  It’s harder to work when you are older…

Dividends provide them with only part of their income steam.  Luckily they have pensions, and a Social Security income steams.

Too bad we won’t.

What do you think about taxing dividends at a higher rate?  After all, money to pay dividends is already taxed once as company income (double taxation anyone?)…

Share your thoughts,

MR